A person is said to be a worker when he is engaged in production activity. The original meaning of production is “value addition” so the actual definition of the workforce is that “ the individual who is engaged in the process of value addition is known as the workforce.”Also, the person who is engaged in the activity of value addition is also contributed to the national income. In India there is an estimated 473 million workforce is present currently. Around 70% of the workforce incorporates male workers and the remaining 30% is the female workforce. The scenario of workforce distribution in urban and rural areas is 25% and 75%.In rural areas, around 25% are female workforce and in urban areas, t is around 20%. The main reason why the percentage of female workers is because of rural poverty. In rural areas, people are mostly engaged in low paid and less productive activities. They just want to earn a family income in order to survive their life Therefore they work seasonal jobs.
The workforce can be classified into the following types :
Self-employed & Hired workers
The workers who are engaged in their own business are called self-employed. For instance: A farmer working in a field, Owner of a factory.
These are those who work for others. They perform their duties or services for others and for their work they get salaries. For example, A teacher teaches in a school.
Classification of hired Workforce
Casual Workers and Regular workers:
These are those workers who work for daily wages. These are originally that workforce who get wage on daily basis. These types of workers don’t get any type of social benefits like gratuity or pension, Social security.
These are the unkilled workforce. For example, workers working in a construction site.
These are workers who get salaries on monthly basis. These are the permanent payroll workforce of the employers. These types of the workforce also get the benefits of social security like pension, gratuity and provident fund.
These types of the workforce are skilled. For example, an engineer working in a factory.
Labour supply, labour force and workforce
Labour supply indicates the number of labour that are willing to work at a particular wage rate. Labour supply doesn’t belong to your total capacity of doing a work i.e if you are capable to work 10 hours but for a particular wage, your hours of working are fixed. Instead of 10 hours, you are might be willing to work for 6 hours at a particular wage rate. Labour supply is always measured based upon wage rate The Labour force is the actual number of workers who are genuinely willing to work. It is not related to the wage rate. Workforce means the number of individuals who are actually working and does not account for those who are willing to work.
Unemployment and participation rate
Unemployment is the difference between the labour force to the workforce. The rate of unemployment can be calculated as the ratio of the number of persons who are unemployed to the size of the labour force.
The participation rate is the proportion of people who are actually engaged in some production process. This result in the value-added in the country It can be calculated as the ratio of the Total workforce to the total population.